All Forum Posts by: Zoran M.

Agreed. Put in an all-cash bid this morning. 28 total pages needed signed ... The package was north of 40 pages in total.

Hi @Paul C.

A local portfolio lender (community bank, etc) may be able to offer you a blanket commercial loan. When reaching out, be sure to speak with a commercial lender rather than someone in the mortgage department.

Using your math, the property is a 9.4 cap rate unit (NOI / Cost). I would jump on loopnet to see what comparable units are trading hands at. The numbers aren't terrible, but I'd try to get at least $200/mo out of it...

Otherwise, it does look like your expense analysis factors in most everything. I would firm us as to whether you or the tenant will need to pay for utilities. What are other properties offering? This impacts your analysis greatly.

From my career with a fortune 100 company, I've learned that there are two types of goals: Stretch and Strain. The former should be attainable, but not without a considerable investment of time and resources. The latter need not be attainable in the near-term, but rather something one can accomplish over time.

Stretch: Buy 4 properties per year vs. current run-rate of 2 properties per year.

Strain: Own 60 properties free a clear within 10 years. (Stretch goal would put me at 40 - Strain puts me at 60).

Great post, @Jonathan Twombly

It's not always about having a track record of success - you must be liked and trusted by investors, as well. I'd take a slightly lesser return from an investor that I like vs. a higher one from one that is ungrateful, arrogant, etc.

Candidly, if you're looking to invest in cheaper properties, you are not limited to investing in high-crime areas. Many cities in the Midwest offer similar properties at a similar price point that generate gross rental revenue of $1,250/mo. Whether the property is in Camden, NJ or Ohio, I would imagine that you will spend little time at the property and have a PM firm in place.

Everything I know about Camden is from the Rolling Stone article "Apocalypse, New Jersey." After reading that, I wouldn't even drive through the city, let alone invest in it. http://www.rollingstone.com/culture/news/apocalypse-new-jersey-a-dispatch-from-americas-most-desperate-town-20131211

In Cleveland, I can go buy a $7.5K home in a borough like Hough. Or I can buy one home for $50-75K in a suburb that will attract good tenants, appreciate in value, will meet lender standards, etc. I prefer the latter.

Unless of course you want to invest in Camden because you think it will be over-run by hipsters in 10 years. I'm not one for speculation, though :-)

In Cleveland, most mid-sized property management firms charge 10% monthly rent, $99 "start-up" fee (evicitions, so forth) and a $500 leasing fee. The latter covers advertising, background/credit checks, etc.

Regarding you offer, could you run comps for similarly priced properties on the neighborhood to see where bids are coming in relative to price. In my neighborhood, foreclosure a go for ~6% below list on average, but in multiple bids they go for about 5% over

Option #3 seems most ideal as with your student loans paid down you will be more likely able to secure financing for future deals. That said, option #2 also allows that AND you get to keep the house. I am in the same position and am leaning towards #2.

Great post Brian! Certainly enough to keep one busy!